Thaksin Shinawatra's position at Manchester City was considered 'inappropriate' by the club's Abu Dhabi owners. Photograph: A Yates/AFP

Manchester City have dismissed ­Thaksin Shinawatra from his position as the ­honorary club president after deciding the time was right to take a stance against a man who has been convicted of multi-million-pound corruption and is ­currently on the run from the authorities in ­Thailand after being sentenced to two years in prison.

City's rulers in Abu Dhabi took the decision after high-level talks over the past few weeks to determine what to do about the way the former owner had become an increasing source of embarrassment to his successors at Eastlands.

The new owner, Sheikh Mansour Bin Zayed Al Nahyan, and the chairman, Khaldoon Al Mubarak, concluded that it would be "inappropriate" to allow Thaksin to continue holding such a prominent position and that the former prime minister of Thailand should become the first high-profile casualty of their reign.

Simon Pearce, the sheikh's personal envoy, and the other English representatives on City's board were also aware that the Premier League had strong objections about the involvement of a fugitive who was once described by Human Rights Watch as "a human-rights abuser of the worst kind".

Thaksin, who accepted the position when he sold the club to ADUG last ­September, has been on the run, spending time in the Middle East, China and the Bahamas, since his UK visa was cancelled in November. His current whereabouts are unknown to City but the club's executive chairman, Garry Cook, managed to get a message to the 59-year-old, via intermediaries, before the 1-0 defeat of Middlesbrough on Saturday.

Thaksin's name was subsequently removed from the match-day programme and has also been taken off the club's ­website as well as various places inside the stadium.

He has always maintained his innocence, describing his conviction at Thailand's supreme court last October as "politically motivated", and claiming he had to flee the country because it was not safe for him to stay.

Thaksin is still a popular ­figure with many City supporters, who credit him with rescuing the club from financial hardship and setting up the ADUG deal. However, City are also aware of fans who refused to watch the club while Thaksin and his family were in ­control at Eastlands.

Thaksin, who made a £120m profit by selling City, may now try to sell his remaining 10% stake in the club as tries to build a new life – he is reported to be building a £5.5m property in China – and fight Thailand's extradition procedures.